The company sold 10,442 units last month compared to 11,738 units sold in December 2014, a drop of 1,296 units on a month-on-month basis. In the same month, Toyota exported 441 units.

"The monthly sales were considerably affected by factors like the ban on registration of diesel vehicles with engine capacity of more than 2000 cc in Delhi and NCR (National Capital Region) where Toyota is significantly present. The monthly sales were also hit due to the floods in Chennai," Toyota said in a statement.

Annually, Toyota reported five percent cumulative growth in sales volume for the calendar year 2015, it sold 1,39,815 units from January to December 2015 against 1,32,673 units clocked in calendar year 2014.On a year-on-year basis, sales volume grew by 7,142 units in 2015 compared to 2014.

Employing more than 7,000 people, Toyota has a total installed production capacity of 3,10,000 units.